Analysis of the divergence of GBP / USD on October 9. Will the pair break the mark of 1.31?
The currency pair GBP / USD performed a slight drop after the formation of a bearish divergence at the MACD indicator. However, the pair quotes completed a new close above the correction level of 23.6% – 1.3067. Thus, the growth of the pair resumed in the direction of the correctional level of 38.2% – 1.3316. The new consolidation of quotations under the Fibo level of 23.6% will work again in favor of the US currency and the pair began to fall in the direction of the correction level of 0.0% – 1.2662.
The Fibo grid was built according to extremums of April 17, 2018, and August 15, 2018.
On the hourly chart, a reversal was made in favor of the British pound after the formation of a bullish divergence in the CCI indicator, and a return to the correction level of 38.2% – 1.3101. Reversing the quotations from the Fibo level of 38.2% will allow traders to count on a reversal in favor of the American currency and a slight drop in the direction of the correction level of 50.0% – 1.3041. There are no ripening divergences today. Fixing the pair above the Fibo level of 38.2% will increase the likelihood of further growth in the direction of the correctional level of 23.6% – 1.3176.
The Fib net is built on extremums from September 5, 2018, and September 20, 2018.
Recommendations to traders:
New purchases of the GBP / USD currency pair can be made with the target of 1.3176 and a Stop Loss order under the correction level of 38.2% if the closing above the Fibo level is 1.3101 (hourly chart).
To sell a pair of GBP / USD currency, it will be possible with the target of 1.3041 and a Stop Loss order above the level of 38.2% if the pair bounces off the Fibo level of 1.3101 (hourly chart).